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There were reports stating that leading production house, AGS Entertainment has been banned from producing movies as they have not followed the new regulations of spending limited budget for promotions.

“Hearing reports that #Ags has been banned from producing movies for overspending on promotions for #ThaniOruvan Shocked!”, wrote Archana Kalpathi, CEO of AGS cinemas on Twitter.

Apparently, in a recent meeting producers’ council members have discussed about the issue and the council’s secretary Radhakrishnan has said that they won’t be co-operating anymore for AGS Entertainment and their upcoming films.

According to the new rule, a film producer can only invest RS 25 lakhs for TV promotions, 15 lakhs for FM radio promotions. Among newspapers, producers should give advertisements in only one English daily per day. At the same time, they can advertise in two Tamil dailies in the morning and two Tamil dailies in the evening.